Back in 2008, Magen inlicensed for an undisclosed sum a number of derm compounds from Eli Lilly that showed positive anti-inflammatory and anti-proliferative results in preclinical studies. It’s a good thing they did: those compounds were the primary reason for PPD’s interest in the biotech. The buy-out gives PPD an entrée into the specialist field of dermatology. In a press release announcing the news, PPD CEO Fred Eshelman noted that dermatologic treatments generally have a “more straightforward path to regulatory approval.” That’s certainly part of the logic behind moves of another specialist drug maker, Valeant, which is trying to brand itself as a derm power-house thanks to the recent acquisitions of Coria Laboratories, Dow, and DermaTech.

The publicly traded company has seen its stock nearly double over the past year. The company has genetically engineered a microbe that eats sugar from corn and generates a plastic-like molecule called PHA. After a few months, the bioplastic will decompose in water or soil and is so pure that waste containers made with the material are safe for use in backyard composting heaps. Metabolix also claims its bioplastic is carbon neutral.

The company has entered into a joint venture with the Archer Daniels Midland company (ADM) which is called Telles. The venture will begin shipping their “Mirel” bioplastic pellets from a new plant in Clinton, Iowa. Newell Rubbermaid’s Paper Mate division is one of the first customers, using the Mirel bioplastic pellets in a resin form for their new $1.25 biodegradeable Paper Mate pens.

Metabolix charges around $2.50 a pound for its green bioplastic, about twice the price of traditional plastics. But increased customer demand for “Green” products and biodegradeable items is so strong in many cases that lower margins can be made up for by increased unit sales.

Metabolix creates products that are genetically modified – a taboo in many environmentalist circles. And, as the demand for bioplastics increases, many worry that the demand for corn, already being used increasingly for ethanol production, will rise even more dramatically, driving up food prices.

Metabolix is working to address these concerns by researching next generation plastics made from nonfood material such as prairie switchgrass.

Genes are the instructions to make proteins, which are responsible for almost all of the processes that keep organisms alive.

Genetic engineering techniques are used to insert genes from other organisms into bacteria, which then churn out proteins that produce hepatitis-B vaccine and insulin for diabetics. Botanists genetically modify crops to boost hardiness and nutritional value.

But geneticists do more than bestow organisms with new characteristics. They also manipulate DNA to study the role of individual genes. Scientists add, delete, or modify genes, thus altering the corresponding proteins’ structure or levels in the cell and revealing the genes’ role.

Genetic Engineering

Genetic engineers have manipulated the DNA of organisms as diverse as mammals, birds, fish, insects, worms, plants, fungi and bacteria. These studies have given scientists valuable insights into how the human body functions and why diseases arise in humans.
Scientific identification of genes can also provide targets for new antibiotic and antiviral drugs. Further, gene therapy could someday allow scientists to cure diseases and cancers by replacement of defective genes.

In addition, genetically engineering microbes could produce new biodegradable polymers or clean up radioactive waste sites or petroleum spills.

Although scientists have sequences the complete genomes of many organisms, including humans, there is still a great deal unknown about what all those genes do. As the quest for this genetic knowledge continues, the important role that genetic engineers play will only expand.

Four ways to manipulate genes:

1. Amplify a genetic characteristic:
The purpose would be to learn more about a gene’s role in an organism.

Genetic engineers would effect this change by manipulating or adding an extra copy of the gene to increase its activity.

Because over expression of a gene responsible for a cell’s ability to respond to a protein called epidermal growth factor is associated with most cancers, this has led to the development of anti-cancer drugs that target the expression of this gene.

2. Delete a genetic characteristic:
The purpose would be to learn more about a gene’s role in an organism, this time by seeing what happens when the gene is removed.

Genetic engineers or scientists would remove or replace the normal functioning version of the gene to delete it.

Deleting certain genes in mice has shown how their absence affects disease. Knocking out genes like PINK1 or DJ-1, for example, can lead to Parkinson’s symptoms in mice, providing an animal model to study the disease.

3. Modify a genetic characteristic:
The purpose would be to identify the specific sequence of DNA that is responsible for a gene’s function.

A mutated gene is inserted into an organism. The gene produces a modified protein.

Modified genes may explain how enzymes bind to other molecules. Angiotensin-converting enzyme, for example, plays a role in heart function and diabetes. Protein sequences allow the enzyme to bind to ions, which helps to regulate its activity.

4. Map a genetic characteristic:
The purpose would be to understand the activity of a gene and its protein.

A “marked” gene is transferred into an organism’s cells.

Proteins of marked BRCA1 genes, whose mutation can increase the risk of breast and ovarian cancer, were found in the cells’ mitochondria. BRCA1’s presence there may be important for tis function in suppressing tumors, because cancer is often associated with mutated mitochondrial DNA.

Germany’s Merck KgAA offers $7.2B for Billerica’s Millipore. Merck KgAA has swooped in to offer $6 billion, or $107 per share, for the bioresearch and bioproduction company, beating Waltham’s Thermo Fisher to the punch. Including debt, the deal is valued at $7.2 billion. The deal will boost Merck’s chemicals business, which currently generates 25 percent of its total revenue, the company says in a statement. With the Millipore buyout, that number will grow to 35 percent. And it gives the developer a strong source of revenue that’s not subject to the uncertainties of drug development.

The German company says it intends to retain Millipore’s headquarters in Billerica, Massachusetts and combine it with Merck’s U.S. chemical headquarters. It also plans to build on Millipore’s workforce and retain its senior management. Merck expects that the combined business will generate annual cost synergies of around $100 million (€ 75 million), which it expects to realize within three years from the closing of the transaction, according to a statement.

In 2009, Millipore generated sales of $1.7 billion, with roughly 6,000 employees in more than 30 countries. The deal is expected to close in the second half of 2010.

Merck KGaA and Millipore Announce Transaction
Merck to acquire all outstanding Millipore shares for US$ 107 per share in cash, creating a world-class partner for the life science sector
Agreed transaction valued at approximately € 5.3 billion (US$ 7.2 billion)
Combination will create a € 2.1 billion (US$ 2.9 billion) partner for the Life Science sector and transform Merck Chemicals
Combined business will have significant scale in high-growth bioresearch and bioproduction segments
Merck intends to retain Millipore’s headquarters in Billerica, Massachusetts
Darmstadt, Germany and Billerica, MA – February 28, 2010 – Merck KGaA, a global pharmaceutical and chemical company, and Millipore Corporation (NYSE: MIL), a leading Life Science company based in Billerica, Massachusetts, USA, today announced that they have entered into a definitive agreement under which Merck KGaA will acquire all outstanding shares of common stock of Millipore, for US$ 107 per share in cash, or a total transaction value, including net debt, of approximately € 5.3 billion (US$ 7.2 billion). The transaction was approved by the boards of directors of both companies. Millipore and Merck will create a € 2.1 billion (US$ 2.9 billion) world-class partner for the Life Science sector, achieving significant scale in high-margin specialty products with an attractive growth profile.
“This transaction is very attractive to shareholders, customers and employees of both companies,” said Dr. Karl-Ludwig Kley, Chairman of the Executive Board of Merck. “This is a combination with an excellent strategic fit, which will allow us to cover the entire value chain for our pharma and biopharma customers, offering in entire value chain for our pharma and biopharma customers, offering integrated solutions beyond chemicals.”
Millipore has a strong position in the attractive bioresearch and bioproduction segments, offering a comprehensive range of products, technologies and services for pharma and biotech companies, as well as for academia, to improve laboratory productivity and to develop and optimize manufacturing processes. In 2009, Millipore generated sales of US$ 1.7 billion, with around 6,000 employees in more than 30 countries.
Martin Madaus, Chairman, President and CEO of Millipore said, “Over the past five years, we have transformed Millipore into a life science leader by driving innovation, entering new markets, and generating exceptional operational performance. Today’s announcement, which is the outcome of a thorough strategic review process, is a validation of the tremendous value of the Millipore brand and a testament to the value this transformation has created for all of our stakeholders. We are excited to join a high-quality company like Merck as we will gain greater scale and scope in the life science industry. This is a very positive outcome for our employees and customers as we continue to build on our strategy for growth, while maintaining our headquarters in Billerica.”
Together, Millipore and Merck will have a significant presence in high-growth segments and an enhanced geographic presence. Combining the research and development capabilities of both companies will create a powerful innovation platform to develop cutting-edge technologies that are tailored even more closely to the needs of customers.
Dr. Kley added: “By combining Millipore’s bioscience and bioprocess knowledge with our own expertise in serving pharma customers, we will be able to unlock value in our chemicals business and transform it into a strong growth driver for Merck. Through this acquisition, we will expand the overall product offering of the Merck Group, using the well-recognized Millipore brand in addition to our own brand.”
The acquisition is fully in line with Merck’s strategy of focusing on high-margin, specialty products with an attractive growth profile. In addition, the transaction will lead to a more balanced business profile for the Group. Currently, the Chemicals business sector generates around 25% of Merck’s total revenues. Following the transaction, the chemicals business will contribute 35% of total Group revenues of € 8.9 billion (pro forma), driven by its strong Liquid Crystals business and the new world-class life science business.
In order to ensure a seamless integration of the two businesses, Merck will apply a “best of both worlds” integration approach across all operating business functions. Merck plans to build on Millipore’s talented workforce and intends to retain its senior management. The company also plans to maintain Millipore’s headquarters in Billerica and combine it with Merck’s U.S. chemicals headquarters. Merck expects that the combined business will generate annual cost synergies of around US$ 100 million (€ 75 million), which Merck expects to realize within three years from the closing of the transaction.
The acquisition will be funded through available cash and a term loan provided by Bank of America Merrill Lynch, BNP Paribas and Commerzbank Aktiengesellschaft. Merck plans to replace part of the facility through the issuance of bonds. Merck is committed to retaining a solid investment-grade rating.
Completion of the acquisition requires the approval of Millipore shareholders, for which Millipore will call a special shareholders meeting, and the satisfaction of other customary conditions, including antitrust clearance. Due to the fact that the two businesses are highly complementary, Merck expects that the transaction will clear regulatory review. Merck anticipates that the transaction will be completed in the second half of 2010, at which time all outstanding shares of Millipore common stock will be exchanged for the right to receive the agreed cash payment.
Guggenheim Securities, LLC and Perella Weinberg Partners LP have acted as financial advisors to Merck in the transaction, and Skadden, Arps, Slate, Meagher & Flom LLP served as the Group’s legal advisor. Goldman Sachs & Co. acted as financial advisor to Millipore, and Cravath, Swaine & Moore LLP and Ropes & Gray LLP acted as Millipore’s legal advisors.
NOTE TO EDITORS:
Further information:
Please find further information on Merck’s corporate website http://www.merck.de
A pre-recorded interview with Merck Chairman of the Executive Board Dr. Karl-Ludwig Kley is available at http://www.merck.de

News Release
Media Call and Press Conference:
Merck Chairman of the Executive Board, Dr. Karl-Ludwig Kley, and Dr. Bernd Reckmann, Head of the Chemicals business sector, will discuss the transaction at a press conference on March 1, 2010 at 10:30 a.m. CET. The press conference will also be broadcast on Merck’s website: http://www.merck.de.
Analysts and Investor Call:
Merck Chairman of the Executive Board, Dr. Karl-Ludwig Kley, and Merck Chief Financial Officer, Dr. Michael Becker, will discuss the transaction in a conference call for European analysts and investors at 9 a.m. CET and for U.S. analysts and investors at 2:30 p.m. CET (8:30 a.m. EST), both on March 1, 2010.
Merck KGaA stock symbols:
Reuters: MRCG, Bloomberg: MRK GY, Dow Jones: MRK.DE
Frankfurt Stock Exchange: ISIN: DE 000 659 9905 – WKN: 659 990
About Merck
Merck is a global pharmaceutical and chemical company with total revenues of € 7.7 billion in 2009, a history that began in 1668, and a future shaped by approximately 33,000 employees in 61 countries. Its success is characterized by innovations from entrepreneurial employees. Merck’s operating activities come under the umbrella of Merck KGaA, in which the Merck family holds an approximately 70% interest and free shareholders own the remaining approximately 30%. In 1917 the U.S. subsidiary Merck & Co. was expropriated and has been an independent company ever since.
About Millipore
Millipore (NYSE: MIL) is a Life Science leader providing cutting-edge technologies, tools, and services for bioscience research and biopharmaceutical manufacturing. As a strategic partner, we collaborate with customers to confront the world’s challenging human health issues. From research to development to production, our scientific expertise and innovative solutions help customers tackle their most complex problems and achieve their goals. Millipore Corporation is an S&P 500 company with more than 6,000 employees worldwide.

Gene researchers have been anticipating for years now about how gene sequencing technology will revolutionize the practice of medicine. With the steady advancement of Moore’s law-induced cost lowering, cheap gene sequencing means this revolution is now underway. The cost of decoding all 6 Billion letters in the human genome has dropped from around $1 Million in 2007 to less than $20,000 today.

Already the cost of performing a gene scan on a patient can be lowered to $2,500 if a two-step method is used to extract and sequence only the 1% of the gene sequences that contain known genes. New gene sequencers being introduced by companies such as Illumina and Life Technologies could lower the cost of sequencing an entire patient’s genome to below $3,000 by the end of 2010.

Although DNA sequencers have not been approved for use in medical testing, and insurers don’t pay for sequencing, peering into the DNA of wealthy patients with rare and scary diseases is becoming an option.

Knome, a privately held, Cambridge, Massachusetts based company, started out in 2008 by charging up to $350,000 to arrange sequencing and interpretation of the gene data for wealthy patrons as a vanity project. The company now offers the scans for as little as $25,000. The company’s CEO, Jorge Conde, is said to have expressed that several patients hoping to use the scans to guide their care providers in diagnosis and prescription. Cancer patients may be among the first to benefit from DNA sequencing technology.

Ligon Discovery reported recently on its website that it has raised $1 milllion in seed financing from incTANK Ventures. The Cambridge, MA-based startup says it uses a small molecule microarray system developed at Harvard University to discover drugs, and the drug-discovery technology has already been put to work at the Broad Institute. The company founders include Benjamin Ebert of Harvard Medical School, Angela Koehler of the Broad Institute, and company CEO Patrick Kleyn, who was previously director of scientific planning at the Broad. As part of the financing, IncTank Ventures general partner Christian Bailey is joining the board of directors at Ligon, according to the company.

Cambridge, MA-based Cambridgesoft, which makes software for life sciences companies, disclosed in regulatory documents filed November 17 that it has raised $31.3 million in new equity-based financing. Cambridgesoft first announced the funding round (though not the amount) in a November 16 release that named new investor Health Evolution Partners and existing investor Goldman Sachs as the funders in the round.

Waltham, MA-based ImmunoGen (NASDAQ: IMGN) said recently that Amgen has purchased a second license to develop a treatment that uses ImmunoGen’s technology for linking targeted antibodies to cell-killing agents that make them more potent. ImmunoGen will get $1 million upfront and could receive $34 million worth of milestone payments over time if Amgen is successful in developing a drug against an undisclosed target on cancer cells. Amgen bought its first such license to the ImmunoGen technology in September.

Epizyme, based in Cambridge, MA and working on cancer-fighting genetic drugs, announced on October 7th that it had raised $32 Million from a diverse group of investors including the famed Silicon Valley -based Kleiner Perkins Caulfied and Beyers, the the venture-investing units of both biotech giant Amgen and Japanese drugmaker Astrellas Pharma.

The startup has raised $46 Million to date. Epizyme’s drugs attack cancer-causing enzymes. Genes determine how our bodies change over time. But they only spring into action when prompted by another set of biochemical factors – seperate from DNA – known as the epigenome. Epizyme scientists believe they may be able to control disease-related genes by aiming new drugs at these factors.

The science of epigenetics is understandably complex. Raising such funds was an impressive feat for this startup, given a market that is hostile currently to biotech startups.

The amount of venture capital raised by biotechs in the third quarter of 2009 dropped 30% Year-over-year, to $759 Million, according to a recent report by financial services firm Burrill & Co.

Epizyme is primarily in the spotlight for its promising research on cancer. The company’s understanding of how DNA wraps around proteins that control how genes create cells, tissues and organs are the basis of its discoveries.

Epizyme’s newest genetic pharmaceuticals are designed to cripple malfunctioning enzymes that contribute to such afflictions as cancers of the prostrate, lung, breast and more. These drugs may someday be tested against inflammatory diseases, obesity and Alzheimer’s disease as well.

Dr. Kazumi Shiosaki, PhD, is a chemist who founded Epizyme with funding from MPM Capital, where she worked after leaving Millenium Pharmaceuticals. Prior to that, Shiosaki worked at Abbott Laboratories.

Epizyme is working in the exciting field of epigenetics and has a solid stable of talented scientists and drug industry veterans, including Chief Scientific Officer Robert A. Copeland, who came to the company from GlaxoSmithKline.

Frazer, PA-based Cephalon (NASDAQ: CEPH) has agreed to pay $30 million for an option to acquire BioAssets Development Corporation, a Wellesley, MA-based company investigating spinal uses for existing and experimental drugs, according to a press release. Under the terms of the agreement, BioAssets will be eligible for an additional payment if Cephalon exercises the option, as well as for payments tied to regulatory and sales milestones.

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When swine flu struck a U.S. Army base in New Jersey in 1976, President Gerald Ford ordered a $135 million nationwide vaccination effort. It was a disaster. The epidemic never happened, and more than 30 people died from the vaccine. Time magazine recounts the tale.

For Boston’s high-risk, cash-intensive biotech industry, it’s now-or-never time. Biotech companies have always been notoriously risky. They tend to burn through cash – to develop one drug can cost as much as $1 billion – and operate on a “pre-revenue” basis for years. Now the credit crunch is hitting the lab-coat crowd harder than most. For private outfits venture money is drying up on one end, and on the other there’s no easy exit in an IPO; on the publicly traded side, small and midsize listed companies are struggling to find enough funding to stay afloat. Life sciences research firm Burrill & Company says that one-third of publicly traded biotechs have less than six months’ worth of cash left – and he predicts that as many as 100 might go under or be forced to merge this year (10 have filed for bankruptcy since November). While that’s bad news for some companies, other companies may benefit from the available assets and skilled staff of these Boston biotech firms should they prove unable to bring their promising new drugs to market.

Oscient Pharmaceuticals, a Waltham, MA company working on drugs for high blood cholesterol and chronic bronchitis, and financed by Orbimed Advisors and Paul Capital Partners, has asked Broadpoint Capital to explore a possible sale after auditors warned the 213-employee company of an impending cash shortage.

Altus Pharmaceuticals, a Cambridgeport, MA company working on drugs for gastrointestinal and metabolic disorders, and funded by U.S. Venture Partners and Warburg Pincus, has pulled the plug on its drug for cystic fibrosis and cut more than 100 jobs. One of Altus’ VC board members resigned abruptly in April.

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PMO Director. These are my personal thoughts about software development, technology and related topics that interest me. In general, you will find a bias towards project management related issues and lots of talk about interacting with stakeholders or programmers. I try to present a technical view from a user's perspective. The views presented here on my professional and personal blog represent my own views and experiences and not those of my employer.